What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-06 · 60 added, 53 removed, 392 unchanged (22% of the section changed)

17 unchanged sentences

and 11 additional countries at the time of acquisition.

This transaction expands our geographic footprint in attractive markets, including Florida and Puerto Rico and provides a platform for domestic and international growth.

Following the transaction, we own 87.7% of Founders, which controls SMG with an 85.1% ownership interest.

See Note 2 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” This transaction expands our geographic footprint in attractive markets, including Florida and Puerto Rico and provides a platform for domestic and international growth.

Following the transaction and subsequent non-controlling interest acquisitions during the third quarter of fiscal 2026, we owned 100% of Founders and held an effective 97.4% ownership interest in SMG as of June 30, 2026.

In July 2026, we acquired the remaining noncontrolling interest in SMG, increasing our ownership of SMG to 100%.

SMG's results are consolidated in our financial statements from January 2, 2026 and are reported within our SMG segment.

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EZCORP is a Delaware corporation headquartered in Austin, Texas.

We are a leading provider of pawn services in the United States and Latin America.

We are a leading provider of pawn services in the United States, Latin America and the Caribbean.

Pawn loans are non-recourse loans collateralized by personal property.

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We remain focused on optimizing our balance of pawn loans outstanding (“PLO”) and the resulting higher PSC.

The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrap gross profit (“Jewelry Scrap GP”) for the three and six months ended March 31, 2026 and 2025:

The following chart presents sources of gross profit by geographic disbursement for the three and six months ended March 31, 2026 and 2025:

The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrap gross profit (“Jewelry scrap GP”) for the three and nine months ended June 30, 2026 and 2025:

The following chart presents sources of gross profit by segment for the three and nine months ended June 30, 2026 and 2025:

Results of Operations

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The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S.

dollars as of and for the three and six months ended March 31, 2026 and 2025 were as follows:

March 31, Three Months Ended

March 31, Six Months Ended

dollars as of and for the three and nine months ended June 30, 2026 and 2025 were as follows:

June 30, Three Months Ended

June 30, Nine Months Ended

2026 2025 2026 2025 2026 2025

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Store Count by Segment

Six Months Ended March 31, 2026

Nine Months Ended June 30, 2026

Pawn Latin America Pawn SMG Consolidated

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As of March 31, 2026 559 840 107 1,506

Six Months Ended March 31, 2025

New locations opened — 9 1 10

Locations acquired 1 33 — 34

Locations combined or closed — (1) — (1)

As of June 30, 2026 560 881 108 1,549

Nine Months Ended June 30, 2025

Pawn Latin America Pawn Consolidated

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As of March 31, 2025 542 742 1,284

Three Months Ended March 31, 2026 vs.

Three Months Ended March 31, 2025

New locations opened — 10 10

Locations acquired 3 40 43

Locations combined or closed — (1) (1)

As of June 30, 2025 545 791 1,336

Three Months Ended June 30, 2026 vs.

Three Months Ended June 30, 2025

These tables, as well as the discussion that follows, should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related notes.

2 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change

(in thousands) 2026 2025

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The change was not material.

PLO ended the quarter at $230.5 million, an increase of 16% (13% on a same-store basis) due to increase in average loan size, strong loan demand and improved operational performance.

PLO ended the quarter at $254.5 million, an increase of 15% (13% on a same-store basis) due to an increase in average loan size and continued strong loan demand.

Net inventory increased 28% due to the increase in PLO, layaways and purchases.

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Merchandise sales increased 6% (3% on a same-store basis), and sales gross margin increased by 130 bps to 40%.

Jewelry scrap sales increased 228%, and jewelry scrap sales gross margin increased from 22% to 41% due to increase in gold price and jewelry purchases.

Jewelry scrap sales increased 57% due to increase in gold price and jewelry purchases, and jewelry scrap sales gross margin decreased to 27% from 29%.

Store expenses increased 8% (6% on a same-store basis) primarily due to increased labor, in line with store activity.

Segment contribution increased 24% to $61.6 million.

Segment store count increased by 12 to 559 due to the El Bufalo acquisition in the second quarter of fiscal 2026.

Segment store count increased to 560 due to the acquisition of 1 store during the quarter.

Latin America Pawn

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dollars from its functional currencies noted above under “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information.”

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands) 2026 (GAAP) 2025 (GAAP) Change (GAAP) 2026 (Constant Currency) Change (Constant Currency)

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Depreciation and amortization 2,891 2,156 34% 2,659 23%

Loss on sale or disposal of assets and other 21 — * — *

Segment operating contribution 24,686 15,882 55% 22,771 43%

Other segment income (343) (137) 150% (51) (63)%

Other segment (income) expense (123) (12) * 12 (200)%

Segment contribution $ 24,809 $ 15,894 56% $ 22,759 43%

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Inventory turnover remained consistent at 3.1x.

On a same-store basis, net inventory increased by 11% (consistent on a constant currency basis).

On a same-store basis, net inventory increased by 11% (5% on a constant currency basis).

Aged general merchandise decreased below 1% of total general merchandise inventory.

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PSC increased to $42.9 million, an increase of 37% (26% on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 31% (17% on constant currency basis) and increased 21% on a same-store basis (8% increase on a constant currency basis).

Merchandise sales increased 31% (20% on constant currency basis) and 21% on a same-store basis (11% increase on a constant currency basis).

Merchandise sales gross margin increased to 36% from 31%.

Jewelry scrap sales increased 64%, and jewelry scrap sales gross margin increased to 38% from 24% due to increase in gold price.

Jewelry scrap sales increased 138% due to increase in gold price, and jewelry scrap sales gross margin decreased to 26% from 29%.

Store expenses increased 38% (27% increase on a constant currency basis) and increased 28% on a same-store basis (17% increase on a constant currency basis) due to increased labor, in line with store activity and minimum wage increases.

Segment contribution increased 56% to $24.8 million (43% on a constant currency basis).

Segment store count increased by 4 to 840 during the quarter due to the addition of 4 de novo stores.

Segment store count increased by 41 to 881 during the quarter due to 33 acquired stores and 9 de novo stores, partially offset by 1 store consolidation.

The following table presents selected financial data for our SMG segment.

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(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

PLO of $32.6 million and net inventory of $26.1 million, with aged general merchandise below 1% of total general merchandise inventory.

Total revenues were $51.3 million, comprised of jewelry scrap sales of $19.1 million, merchandise sales of $17.8 million and PSC of $14.4 million.

PLO of $33.8 million and net inventory of $28.9 million, with aged general merchandise at 1.1% of total general merchandise inventory.

Total revenues were $43.1 million, comprised of merchandise sales of $17.1 million (with a margin of 31%), PSC of $14.3 million, and jewelry scrap sales of $11.7 million (with a margin of 24%).

Gross profit was $22.4 million.

Merchandise sales gross margin was 33.1%.

Jewelry scrap sales gross margin was 30.6%, benefiting from the elevated gold price environment.

Store expenses totaled $16.0 million.

Segment contribution was $8.8 million, reflecting the first quarter of SMG operating results following the January 2, 2026 consolidation.

Segment store count increased during the quarter by 2 to 107 due to the addition of de novo stores.

Segment contribution was $5.9 million.

Segment store count increased during the quarter to 108 due to the addition of 1 de novo.

Corporate Items

3 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change

(in thousands) 2026 2025

3 unchanged sentences

Depreciation and amortization 3,287 3,196 3%

Other operating income — (1,262) (100)%

Interest expense 8,353 8,458 (1)%

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Consolidated net income $ 38,494 $ 26,503 45%

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $26.9 million or 41% over the prior year quarter, primarily due to improved operating results from the U.S.

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General and administrative expense increased $6.5 million or 24%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG.

Interest expense increased $5.1 million or 155%, primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025.

Other (income) expense improved $2.0 million primarily due to the non-cash gain on remeasurement of our previously held equity interest in Founders, in connection with the January 2, 2026 acquisition.

Interest income decreased $2.7 million or 49%, primarily due to a decrease in the average Cash and cash equivalents held during the period as compared to the prior period.

Income tax expense increased $5.3 million primarily due to an increase in income before taxes of $17.3 million.

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Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items.

Six Months Ended March 31, 2026 vs.

Six Months Ended March 31, 2025

Nine Months Ended June 30, 2026 vs.

Nine Months Ended June 30, 2025

The tables below and discussion that follows should be read in conjunction with the accompanying condensed consolidated financial statements and related notes.

1 unchanged sentence

Pawn segment:

Six Months Ended

March 31, Change

Nine Months Ended

June 30, Change

(in thousands) 2026 2025

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See “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information” above.

Six Months Ended March 31,

Nine Months Ended June 30,

(in thousands) 2026 (GAAP) 2025 (GAAP) Change (GAAP) 2026 (Constant Currency) Change (Constant Currency)

14 unchanged sentences

Segment operating contribution 63,576 44,836 42% 58,912 31%

Other segment income (366) (208) 76% (134) (36)%

Other segment (income) expense (489) (220) 122% 6 (103)%

Segment contribution $ 64,065 $ 45,056 42% $ 58,906 31%

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Monthly average yield on pawn loans outstanding 16 % 16 % —bps 15 % (100)bps

* Represents a percentage computation that is not mathematically meaningful.

(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

4 unchanged sentences

Store Expenses 28% 17%

During the six months ended March 31, 2026, net store count increased by 25 due to the acquisition of 14 stores and the opening of 11 de novo stores.

During the nine months ended June 30, 2026, net store count increased by 66 due to the acquisition of 47 stores and the opening of 20 de novo stores, partially offset by 1 store consolidation.

PSC increased 32% to $117.7 million (22% to $108.2 million on a constant currency basis) as a result of higher average PLO and new stores.

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accordingly, prior period results do not include SMG operating results and period-over-period comparisons for this segment are not meaningful.

Six Months Ended

Nine Months Ended

(in thousands) 2026

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(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

Pawn service charges were $14.4 million, and merchandise sales gross profit was $5.9 million.

Jewelry scrap sales gross profit was $5.9 million, reflecting a gross margin of 31%.

Total revenues were $94.4 million, comprised of merchandise sales of $34.9 million (with a margin of 32.3%), jewelry scrap sales of $30.8 million (with a margin of 27.9%), and PSC of $28.7 million.

Gross profit was $48.6 million.

Store expenses were $32.6 million.

Segment contribution was $8.8 million, reflecting SMG operating results from the January 2, 2026 consolidation date through March 31, 2026.

Segment contribution was $14.7 million, reflecting SMG operating results from the January 2, 2026 consolidation date through June 30, 2026.

Corporate Items

2 unchanged sentences

Segment Information of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

Six Months Ended

March 31, Change

Nine Months Ended

June 30, Change

(in thousands) 2026 2025

3 unchanged sentences

Depreciation and amortization 10,157 10,117 —%

Other operating income — (1,262) (100)%

Interest expense 24,873 14,886 67%

9 unchanged sentences

General and administrative expenses increased $18.4 million or 24%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG.

Interest expense increased $10.1 million or 157%, primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025.

Interest expense increased $10.0 million or 67%, primarily driven by the issuance of 2032 Senior Notes in the second quarter of fiscal 2025.

Interest income increased $0.8 million or 8%, primarily due to an increase in the average Cash and cash equivalents held during the period as compared to the prior period.

Other (income) expense improved $3.2 million primarily due to the non-cash gain on remeasurement of our previously held equity interest in Founders, in connection with the January 2, 2026 acquisition.

Income tax expense increased $11.4 million, primarily due to an increase in income before income taxes of $48.9 million for the six months ended March 31, 2026 compared to the same period in the prior year.

Income tax expense increased $16.7 million, primarily due to an increase in income before income taxes of $66.2 million for the nine months ended June 30, 2026 compared to the same period in the prior year.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.

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Cash and Cash Equivalents

Our cash and cash equivalents balance was $354.2 million at March 31, 2026 compared to $469.5 million at September 30, 2025.

Our cash and cash equivalents balance was $311.0 million at June 30, 2026 compared to $469.5 million at September 30, 2025.

Our cash and equivalents are primarily held in cash depository accounts with banks in geographies we operate or invested in high quality, short-term liquid investments.

1 unchanged sentence

The table and discussion below presents a summary of the selected sources and uses of our cash:

Six Months Ended

March 31, Percentage

Nine Months Ended

June 30, Percentage

(in thousands) 2026 2025

7 unchanged sentences

The $59.4 million increase in cash flows used in investing activities year-over-year was primarily due to a $91.7 million increase in net pawn lending outflows and a $34.5 million increase in net cash flows used related to acquisitions, investments and capital expenditures, partially offset by a $66.8 million increase in cash inflows from the sale of forfeited collateral.

In the six months ended March 31, 2026, cash used in financing activities was driven primarily by the retirement of SMG’s existing third-party indebtedness.

In the nine months ended June 30, 2026, cash used in financing activities was driven primarily by the retirement of SMG’s existing third-party indebtedness.

In the comparable prior year-period, cash provided by financing activities consisted primarily of proceeds from the issuance of the 2032 Senior Notes, partially offset by debt issuance costs paid in connection with that offering.

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Under the new program, we are authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years (the “2026 Common Stock Repurchase Program”).

During the six months ended March 31, 2026, the Company repurchased and retired 155,838 of our Class A Common Stock for $4.0 million under the 2026 Common Stock Repurchase Program.

During the nine months ended June 30, 2026, the Company repurchased and retired 287,627 of our Class A Common Stock for $8.0 million under the 2026 Common Stock Repurchase Program.

See Note 9 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

19 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis